Editorial: Tax Structure Discourages Florida Real Estate Sales

The Florida legislature and governor are going to great lengths to reform a beleaguered property tax system.

But for a concerned Boynton Beach resident, what they’re planning isn’t going to do nearly enough to help tax-strapped citizens.

What’s worse, for those struggling with the Florida mortgage as well as insurance payments in this day and age, it’s particularly unfair.

The current property tax program, as it exists, and as it is proposed, is essentially unfair. The playing field is not an even one.

Joseph Bach writes to the South Florida Sun-Sentinel that two homes on his street sold for $260,000 in 2003. He was then a snowbird, and did not get the benefits of a homestead exemption until last year.

His neighbor, a Florida home loan holder in an identical house, had been given the homestead status in 2003. His tax was based on $280,000, Bach’s on $450,000.

It seems to Bach, to be equitable and fair, that the property tax should be based on the value of the house times the mill rate.

A small percentage discount could be given to homesteaders, he feels. Doing this should bring the tax burden to a more equitable amount for everyone.

The tax structure does not encourage the sale of Florida real estate.

Even when builders and home sellers reduce home prices and give incentives, the high tax rate is a discouragement. For people considering a move to Florida, they may reach a similar conclusion.

There’s a lot of work left to do.

SOURCE: South Florida Sun-Sentinel